Cobalt has advised Alexela Oil on the acquisition of 220 Energia, an Estonian private-capital-based electricity sales company. The seller, Home of Smart Energy, was represented by Sorainen.
Alexela Oil was established in 1993 and the majority of its shares are owned by the Alexela Group. Alexela is an Estonian company that operates in the areas of energy and property development, and in the metal industry.
220 Energia is an electricity sales company based on Estonian private capital. The company employs over 1000 people and operates in the energy, metal industry, and oil shale processing areas.
“Alexela is a seller of electricity and gas very similar to 220 Energia," said Marko Allikson, member of the board of 220 Energia, "and merging in a single group will provide additional value to the current customers of 220 Energia – our customers can now benefit from the offers of Alexela while it will also improve the company’s long-term capability to offer a competitive alternative to former electricity and gas monopolies related to network companies. The energy market has reached a more mature consolidation phase where it is necessary to acquire new market share to facilitate continued fast growth. That has made market players look for opportunities to consolidate."
Last year, the turnover of 220 Energia grew by 2.3 percent to EUR 7.1 million. The company reached a profit of EUR 60,200 from a loss of EUR 100,400.
Cobalt’s work included drafting and negotiating the transaction documents. The firm's team included Counsel Ott Aava and Partner Peeter Kutman.
The Sorainen team was led by Partner Toomas Prangli and included Lawyers Piret Lappert and Robin Teever.